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Home My WebLink AboutCOVID-19 Economic Response Framework PresentationSTAFF PRESENTATION TO FOLLOW: Geoff Fruin, City Manager: COVID-19 Economic Response Framework � r + ui �A CITY OF IMA CITY 410 East Washington 5trcct [owa City, Iowa 52240-1826 (3 19) 356-5000 (319) 356-5009 FAX WWWJcgov.org CITY OF IOWA CITY COVID-19 Economic Response Framework May Zg, 2020 • Future federal relief - CARES 2.0 / Phase IV (anticipated June - July) • State relief including pass through of federal funding (anticipated June) • State budget efforts, including backfill dollars (anticipated June) • Duration of health crisis, including possible reemergence of the coronavirus • Intermediate health guidelines • Implications on the short term business activity • University of Iowa instructional plans • Shape and speed of full economic recovery Two Tier Recovery Focus • Objective: Create a shared regional (Johnson County) vision for accelerating economic recovery and reshaping a strong future for the well-being of our community. • Scope: To develop an agile renewal strategy and set of recommendations that define a transformed future for our community with greater economic diversity, growth, inclusivity, resilience, and well-being for all. • Assessment and alignment of city resources, community needs • Determination of guiding principles • Crafting of recovery programs to fill most pressing needs of our residents, non-profit agencies and businesses The City's long-term fiscal stability and ability to provide essential services must not be compromised Individual or household relief must be equitable and prioritize those most in need Relief efforts for non-profit agencies should reward collaboration and create lasting operational benefits Business relief programs should be coordinated with actions of regional partners and aim to leverage external funding Economic stimulus efforts must target Iowa City based businesses and support jobs across multiple sectors All relief efforts should yield enduring outcomes that align with the City Council's Climate Action objectives Local funds must not duplicate benefits provided by other private, state and federal relief efforts • Duration of the pandemic and resulting financial impact is unknown • Impact across City funds is varied and will require short and long-term mitigation efforts • Greatest short-term impacts on Parking, Transit, Road UseTax and Water Funds. Possible short-term impacts may arise in the General Fund if property tax collections drop or backfill payments are withheld • Long-term impacts may include the above funds and will notably impact the General Fund in the next 2-5 years with FY 24 anticipated as being a particularly difficult year • Maintaining strong reserves will be important for future stability and the long-term health of the city operations Short-term • Elimination or delay in discretionary non-essential expenditures • Delay of capital improvement projects • Delay in filling some vacant and newly authorized positions • Furlough of temporary staff Long-term • Reduction in overall workforce through attrition and position elimination • Reduction of operating dollars being transferred forthe City's Capital Improvement Program • Reallocation of Capital Improvement Program dollarsto fill gaps in infrastructure funding • Continued debt restructuring Potential Recovery Program Funding Opportunities Existing Operational Funds: • Affordable Housing Fund: opportunityfunds, land banking dollars, fee -in -lieu collections • CDBG / Home Funds: unallocated program income dollars • Climate Action Fund: reallocation of emergency levy funds • Economic Development Opportunity Line Item: discretionary funds • General Fund Contingency Line Item: discretionary but may be needed to offset revenue loss • Capital Improvement Fund: Delay or cancellation of projects and transfers in from otherfunds • Tax Increment Financing: Use of capacity in existing Urban Renewal Areas to spur relief Reserve Funds: • General Fund Reserve: utilize any FY 20 surplus dollars and/or reduce targeted reserve within policy guidelines • Utility Fund Reserves: reduce current reserve levels and maintain required coverages • Emergency Reserve: discretionary use for emergencies • CARESAct • CDBG Supplement: Council authorized use on May Stn (Additional funding possible this summer) ICPH Funds: Administrative fees and public housing operating subsidy supplements Transit Funds: Awaiting FTA guidance, MPO to award funds on May 27th Individual and Household Relief L� . - . Potential V1 C • City's ability to pay • Thresholds for eligibility • Ensure most basic needs are met (housing, food, healthcare, childcare and transportation) • Coordination with non-profit service providers or other community partners • Potential repurposing of Affordable Housing Funds • Rebates / credits for unused city services • Leverage outside funds • Avoid duplication of benefits • Forgo water shutoffs and late fees • Completed: issued in March • Postponement of approved water rate increase • Completed: 3 month delay authorized • Expansion of City's existing utility discount program • Direct housing assistance (contracted) • Expansion of food security efforts (e.g. double up food bucks program, coordination with local food- service businesses, farmers and non -profits) • Local childcare credit program • Free transit pass distribution • Employment skills enhancement partnership with local education institutions, labor organizations and business partners • Parking pass rebate / credit (option: possible coordination with a community gift card program) Non -Profit Support • City's abilityto pay • Target most essential human service needs for all residents (housing, food, healthcare / mental health, youth services) • Support Iowa City based arts and culture organizations that build community and drive economic activity • Encourage collaborative efforts • Leverage outside relief funds • Avoid duplication of benefits • Direct operational grants (additional supplement of Aid to Agencies program) • Forgivable / low-interest loans to ease debt burdens, pursue organizational efficiencies, or otherwise reduce long- term operational costs • Interim arts and culture funding program and supplemented marketing efforts Direct Business Support • City's abilityto pay • Rebates / credits for unused city services • Coordination with regional business partners and local lending institutions • Leverage outside relief funds • Avoid duplication of benefits • Expansion of the marketing commitment to https://icareatogether.com/ and amplification of the buy local message • Committed $7k in April along with other cities • Sidewalk cafe fee waivers • Completed in May • Expansion of micro -loan / loan guarantee program with lending institutions • Creation of small business grant/ loan program prioritizing those not receiving state and federal relief • Targeted grants / loans to minority & women owned businesses • Assistance securing personal protective equipment for employees and customers • Parking pass rebate / credit (option: possible coordination with a community gift card program) Economic Stimulus onsiderations:WAor Potential Examples: JJ • City's abilityto pay • Exclusive use of Iowa City based businesses whenever possible • Alignment with Climate Action objectives • Impact on multiple industry sectors • Leverage outside relief funds • Expanded 2021-23 capital program (open space, roadways, utilities, facilities) • Accelerated Climate Action grant programs (residential and commercial) • Permit fee abatement for climate action related improvements • Creation of green & livable wage job credit program • Commercial tax abatement program launch • Expansion of food service partnership between restaurants and non -profits Wrap Up • Iowa City can dedicate financial resources to a recovery effort, however there is financial and operational risk in moving too quickly with a large effort • Initial effort should focus on existing budgeted dollars and any possible year-end surplus • Long-term efforts can target budgeted dollars and reserves afterwe have more clarity on ourfinancial outlook • The City Council should articulate short and long-term recovery priorities including your guiding principles and allow staff to develop detailed programs for your review and approval STAFF PRESENTATION CONCLUDED � r rrM as � h CITY OF IOWA CITY 410 East Washington Strect Iowa City, Iowa 52240-1826 (3 19) 356-5000 (3 19) 356-5009 FAX www. icgov. o rg